Windfall Tax Could Be Positive for UK Utilities, Citi Says

A windfall tax on clean generator profits might be viewed positively compared with the current proposal for a revenue price cap, says Citi’s Jenny Ping, adding that utilities should still benefit from higher commodity prices.

• NOTE: UK Prime Minister Rishi Sunak and Chancellor of the Exchequer Jeremy Hunt are taking no options off the table, including windfall taxes on banks and energy firms
• Ping says a tax on generator profits with investment offsets could potentially be an incremental positive and a “much-needed clearing event for the UK utilities”
  • Moving from a tax that removes 100% of supernormal revenues ...